Trade Alert 1/2/2024 #2

This is our 2nd newsletter today. We own 200 shares of DIS and have covered calls sold against. Today, we converted that into a 1×2 call spread through buying a lower strike call. Buy to open: DIS Feb 16th (monthly) 95.00 strike call (ratio of 1) Debit: 2.62 – this order has filled This will leave us in a 95-105 1×2 call spread at a total cost of 0.30 or $30.00 of max risk. We have bear call spread in ARKK that we have held for months. It has gone from almost guaranteed success to a potential loser. Quite the reversal over the past month. Expiration is in 2-weeks. We will hedge a little bit of the risk with long stock but importantly one must place a stop loss on the stock shares! Bought: 25 shares of ARKK at 51.21 as a hedge Sell stop-loss below at 49.03 good til canceled (GTC) order The GTC stop loss is an absolute necessity!